TOKYO, Jun 29 (Pulse News Wire) – JALCO Holdings Inc. (6625.T) announced today that its board of directors approved the acquisition of land and grid connection rights for a high-voltage battery storage facility in Oita Prefecture.
The project, named Ooita, Hita Shi Power Station (tentative name), will have a capacity of 2 MW and 8 MWh and is expected to begin operations in June 2027. The facility will utilize batteries from Gotion and power conversion systems from SMA, aligning with the company's strategy to develop system-scale energy storage projects. JALCO plans to leverage joint ventures and anonymous partnerships to optimize the operational structure moving forward.
The transaction value is below 10% of the company’s net assets as of the end of the previous fiscal year and will be funded through internal resources. In addition to the main revenue stream from demand-side management markets, JALCO anticipates generating income from time-of-use arbitrage and ancillary services. However, significant factors such as market participation timing, pricing dynamics, and operational performance could impact future profitability.
Full contribution to earnings is anticipated from March 2028 onwards.
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